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ACC325_E3_P1 - ACCOUNTING 325 EXAM III PART I FALL 2010...

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ACCOUNTING 325 - EXAM III - PART I - FALL 2010 Name: ___________________________________________ Use the following to answer questions 1-2: The following information was available from the inventory records of Rich Company for January: Unit s Unit Cost Total Cost Balance at January 1 3,000 $9.77 $29,310 Purchases: January 6 2,000 10.30 20,600 January 26 2,700 10.71 28,917 Sales: January 7 (2,500) January 31 (4,000 ) Balance at January 31 1,200 1. Assuming that Rich does not maintain perpetual inventory records, what should be the inventory at January 31, using the weighted-average inventory method, rounded to the nearest dollar? A) $12,606. B) $12,284.** C) $12,312. D) $12,432. 2. Assuming that Rich maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest dollar? Page 1
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Use the following to answer questions 3-4: Niles Co. has the following data related to an item of inventory: Inventory, March 1 100 units @ $4.20 Purchase, March 7 350 units @ $4.40 Purchase, March 16 70 units @ $4.50 Inventory, March 31 130 units 3. The value assigned to ending inventory if Niles uses LIFO is 4. The value assigned to cost of goods sold if Niles uses FIFO is Use the following to answer questions 5-8: Transactions for the month of June were: Purchases Sales June 1 (balance) 800 @ $3.20 June 2 600 @ $5.50 3 2,200 @ 3.10 6 1,600 @ 5.50 7 1,200 @ 3.30 9 1,000 @ 5.50 15 1,800 @ 3.40 10 400 @ 6.00 22 500 @ 3.50 18 1,400 @ 6.00 25 200 @ 6.00
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ACCOUNTING 325 - EXAM III - PART I - FALL 2010 5. Assuming that perpetual inventory records are kept in units only, the ending inventory on a LIFO basis is A) $4,110.** B) $4,160. C) $4,290. D) $4,470. 6. Assuming that perpetual inventory records are kept in dollars, the ending inventory on a LIFO basis is 7. Assuming that perpetual inventory records are kept in dollars, the ending inventory on a FIFO basis is 8. Assuming that perpetual inventory records are kept in units only, the ending inventory on an average-cost basis, rounded to the nearest dollar, is Page 3
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